Show THAT S P OGDEN RATE II II I I I An Explanation By Asst General i I Freight Agent Sproule i J j CAUSE OF TH TROUBLE jI jI j I I I JII2RAI < DS STATEMEAT OF IfE1 CASK FILLY CON1lR1iED The Southern Pacific Makes a Pair Proposition For Settlement and There is Xo Keasou to Believe the Difficulty will Not Be Quickly Adjusted Local View of the Situation SAX FHAXOISCO Aug 9 Southern South-ern Pacific officials deny < the story telegraphed tel-egraphed from Salt Lake to the effect ef-fect that the company is engaged indiscriminating in-discriminating against that point This is the way that Assistant General Gene-ral Freight Agent Sproule explains i AVhy i Wast Put In We are simply J engaged in an effort to hold San Francisco interests at a level with the interests of eastern shippers in the Utah market he said Last month the lines from the east of their own notion reduced the rates from the east to > Utah Had the Southern Pacific stood still and did nothing when those rates were reduced re-duced San Francisco would have been out in the cold and the business of this community would have become severely affected Consequently we put in a tariff from California to Utah common points to meet the situation sit-uation Jt was based on the theory that San Francisco is entitled to have the same rates per mile to Utah on commodities of manufacture in Cati fornia as are made from points of eastern manufacture into i Utah We wanted to enforce the fact that San Franciscos proximity to Utah gives it precedence there I was also based on the theory that San Francisco is entitled to a share in the competition as between the port of San Francisco on the one ihand and ithe ports of New York and New Orleans on the other on articles of import from abroaU Position oE the Other Lines Well we put the tariff into effect on Tune 27 and immediately received notice from the lines east of Ogden that they would not join in the rates and that we must withdraw them They said practically you cannot do business over our rails on such rates And we were thus left without a means of reaching Sal Lake and the other points in Utah beyond Ogden As a consequence of this action on the part of the eastern roads we hal to cancel those rates and in their stead we put in force to Ogden the terminus of our tine rates based on the same theory These rates were made sufficiently iov to enable the shipper to pay the local rate from Ogden Og-den to Salt Lake and still compete with the eastern shippers > o DiHcrmiiiatiti3r Afjaln t Salt Lake Instead of discriminating against Salt Lake we are willing to put in the fame rates to Salt Lake and other Utah common points that are now applying ap-plying only to Ogden and in settling with our connections we are willing to pro rata giving the lines from Ogden Og-den two miles for one whereas the usual mode of settlement is to apportion ap-portion each lines earnings according to the percentage its haul bears to the entire distance over which the freight is carried The Union Pacific and the Rio Grande Western have refused to join in these rates simply because they would rather see the business come from the cast I would give them a longer haul We have been forced into the position we have assumed sumed We could not stand before this community and Defuse to make rates to Ogden simiily because we could not make rates to Salt Lake Viewed lon I As waS plainly statedby The Herald i in the beginning or the Southern Pa I cific rate controversy the question is i one of adjudication and settlement between be-tween the Southern Pacino on the one hand and its eastern connections on i the other hand i There is not one scintilla of evidence I going to show that the Southern Pa 1 cific company have put in the present Ogden rates with the view singly I and alone of making war on Salt Lake job I berf but the evidence is conclusive that such rates were put in as protection of I that companys business on lines that I would best meet the emergency and protect the San Francisco merchants as against the jobbing interests of large centers beyond the river It is a matter of recent record that I mater I the Southern Pacific put in rates to Utah common points after the other lines put in reduced rates from the I east to Utah common points and that the eastern connections of the Southern I Pacific i e the Union Pacific and Rio Grande Western refused to join in such I late inasmuch as shipment would be over the latters rails from Ogden and 1 into what they term thtir own fields I The Southern Pacific then withdrew such rates nothing else was at that j time left for them to du But in return they put in the present rates to Ogden based on the theory advanced and car i ned into effect by its connections on I I the east SUch measures as have been I resorted to by the Southern Pacific pen I pie do not in any way establish a precedent prece-dent it has been done a thousand conc times by roads in the past and will be cone again in the future whenever the different liner fail to come together and agree beforehand on policy and division divi-sion I The Southern Pacific officials disclaim i dis-claim any intention of discrimination 1 against Sal Lake and say they are wiling to put in the same rates as now applying to Ogden to Utah common com-mon points and prorate with their Utah connections giving the latter two j miles for one on the haul from O ilen I whereas the usual mode of settlement i i is to apportion each lines earnings according ac-cording to the patronage its haul bears j to the entire distance over which the j freight is carried I From the statement telegraphed it will be seen that greater forces than I the Salt Lake jobbers assooiafFon muf be called In for settlement The Herald Her-ald believes that no rate war will ensue I en-sue and bases that belief on the ground t that the roads interested will get together I to-gether and fix things up To date that I is the only interpretation that can be I i given in the premises and if things I i continue moving ar they now are ten days from date will see an adjustment I of the rates |